Skip to main content

How Analysts Think Binance’s $4.3B Settlement Will Help Crypto Grow

How Analysts Think Binance $4.3bn Settlement Will Help Crypto Grow

While the recent settlement between Binance, its former CEO Changpeng Zhao, and the U.S. Department of Justice (DOJ) has shocked the entire crypto industry due to the supposed money laundering and terrorism-related financial implications it has, many analysts and execs believe this is ultimately a good outcome, considering that it will cause the crypto space to grow absent uncertainties related to one of its largest actors.

Analysts Argue Binance Settlement Signals Growth in the Industry

The landmark settlement between Binance, one of the largest cryptocurrency exchanges in the world, its former CEO Changpeng “CZ” Zhao, and the U.S. Department of Justice (DOJ) on the charges of money laundering and terrorism financing might bring a new era to the cryptocurrency industry, according to analysts and crypto executives.

Brian Armstrong, CEO of Coinbase, stressed that this action might open new roads for the industry, which will have to be built with compliance in focus. Armstrong stated:

Today’s news reinforces that doing it the hard way was the right decision. We now have an opportunity to start a new chapter for this industry. We took a lot of arrows operating here in the U.S. due to the lack of regulatory clarity, and my hope is that today’s news serves as a catalyst to finally achieve that.

Coinbase is also facing legal actions from the U.S. Securities and Exchange Commission (SEC), which alleges the exchange operates as an unregistered securities broker, evading U.S. regulations for years.

More Reactions

Analysts at JPMorgan, led by Managing Director Nikolaos Panigirtzoglou, also believe the settlement is significant for the cryptocurrency environment, eliminating future uncertainties related to the largest crypto actor. In statements offered to The Block, JPMorgan analysts declared:

We see the prospect of settlement as positive as uncertainty around Binance itself would subside and its trading and BNB Smart Chain business would benefit.

Furthermore, the $4.3 billion deal helps to dispel the potential “systemic risk” of a hypothetical collapse of Binance, according to JPMorgan.

Other analysts believe that with Binance under the DOJ’s surveillance and being forced to exit the U.S. completely, the opportunity for finally greenlighting a spot Bitcoin ETF is upon the crypto market. Michael Rinko, research analyst at Delphi Digital, told CNBC:

If you’re actively investigating the company and the CEO who’s telling everyone the price of these assets, how are you then going to greenlight an ETF? Having this settlement behind us could be the final big, big step needed for this ETF.

What do you think about the state of the crypto industry after Binance’s plea deal? Tell us in the comments section below.



from Bitcoin News https://ift.tt/6T0Lkg8
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more